Posted by Shivali Anand
September 8, 2021 | 3-minute read (450 words)
Small-business statistics can reveal more than just the current state of the market; they can reveal long-term “truths” about entrepreneurship in the U.S. Read our blog for a look at these stats.
Entrepreneurs tend to work at such a rapid and intense pace that it can feel like being in a vacuum at times. Knowing what's going on with other small businesses is a good way to keep a pulse on what’s going on in the market.
To assist you in getting a sense of the current environment, we've gathered some data regarding small companies. We combed through troves of government data to find the information that is most important to entrepreneurs and presented it below.
A business's survival is unlikely to be affected by the economy. That's according to the Small Business Administration, which studied small business survivability over 15 years. Businesses started in expanding economies in 1995 and 2005, the SBA notes. "Those started just before the downturn in 2000 and those started just after the downturn had almost identical survival paths,” the agency wrote.
For the past eight years, annual business openings have outnumbered closings. According to the SBA, the number of firms with employees that opened in 2018 surpassed 1 million for the first time in history. Businesses in Washington, South Carolina, and Idaho led the way in terms of growth.
Approximately 81% of small businesses in the U.S. have no employees. According to the SBA, only 19% of the country's 30.7 million small businesses have paid employees on staff.
According to the SBA, about half of all businesses survive for five years or longer, and about a third survive for at least a decade. "Around two out of every three establishment exits are firm closures," the agency said, despite the lack of timely data on firm survival rates.
Minority-owned businesses account for about 8% of the 30.7 million small businesses in the United States. According to the SBA, 2.5 million businesses are owned by veterans.
1 out of every 5 small businesses is owned by a family. According to the SBA, real estate/leasing, mining/quarrying, oil/gas extraction and accommodation/food services have the highest percentage of family-owned businesses.
Approximately one-third of startups launch with less than $10,000 in funding. Another 29% have a startup budget of $10,000 to $49,999, and 26% have a budget of $50,000 to $249,999. According to the SBA, only about 12% of businesses start with $250,000 or more.
Although there are probably businesses that have significantly different results than those depicted by these data, they might be instrumental in assisting you as your organization debuts and thrives.